In Which of the Following Circumstances Would a CPA Be

question 8

Multiple Choice

In which of the following circumstances would a CPA be bound by ethics to refrain from disclosing any confidential information obtained during the course of a professional engagement?

• A)The CPA is issued a summons enforceable by a court order that orders the CPA to present confidential information.
• B)A major stockholder of a client company seeks accounting information from the CPA after management declined to disclose the requested information.
• C)Confidential client information is requested as part of a quality review of the CPA's practice by a review team authorized by the AICPA.
• D)An inquiry by a disciplinary body of a state CPA society requests confidential client information.

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Definitions:

Standard Deviation

A statistical measure of the dispersion of returns for a given security or market index, often used to gauge the amount of variability or volatility of an investment.

Expected Return

The weighted average of all possible returns from an investment, considering the probabilities of each outcome.

Efficient Frontier

A concept in modern portfolio theory representing the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is used as a measure of volatility.